Silver Video 23.10.20.
Silver Gets Support From Weaker U.S. Dollar
Silver has managed to stay above the nearest support level at the 50 EMA at $24.55 as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index made an attempt to settle above the resistance at the 93 level but this attempt was not successful. Currently, the U.S. Dollar Index is trying to settle below the nearest support level at 92.80.
If this attempt is successful, the U.S. Dollar Index will gain additional downside momentum which will be bullish for silver. Weaker dollar provides support to silver and other precious metals as it makes them cheaper for buyers who have other currencies.
Meanwhile, gold has also settled above its 50 EMA at $1905 and continues its attempts to gain upside momentum. Gold was not volatile in October but volatility can increase closer to U.S. elections and immediately after them.
Gold/silver ratio has recently made another attempt to get to the test of the resistance at the 20 EMA at 77.75 but failed to gain sufficient momentum and declined closer to the 77 level. In case gold/silver ratio settles below 77, it will gain downside momentum and head towards the recent lows near 75.50 which will be bullish for silver.
Silver made an attempt to settle below the support at the 50 EMA at $24.55 but failed to gain any downside momentum. In case silver manages to stay above the 50 EMA, it will have a chance to get to the test of the nearest resistance level at $25.00.
If silver gets above the resistance at $25.00, it will head towards the next resistance at $25.55. A move above October highs at $25.55 will signal that silver is ready to continue its upside trend.
On the support side, a move below the nearest support at the 50 EMA will lead to increased downside momentum and push silver towards the support at $23.90.
There are no material levels between $23.90 and $24.55 so there is plenty of room to gain downside momentum in case the right catalysts emerge. A move below the support at $23.90 will open the way to the test of the next support level at $23.30.
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This article was originally posted on FX Empire
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